mkultrawide [any]

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Joined 2 years ago
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Cake day: August 2nd, 2022

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  • IIRC, REITs have outperformed the S&P 500 by 2-4% for the past decade on an annualized basis. A big part of the reason is leverage and the ability to borrow against real estate assets. Regular investors are highly unlikely to be able to buy a stock on margin with just 20% or less of the total asset value.

    Let's say you buy a rental $1M rental property with 20% down ($200K) and then turn around and rent it out. In theory, that $200k is all the investor should end up paying themsevles, and the other $800K will be paid by the tenants. In 15 years, the investor owns a $1M asset (not accounting for asset appreciation) that also generates regular income that they only paid $200K for. They quadrupled their investment over the life of the mortgage.


















  • https://www.ft.com/content/45abe561-a6cc-4058-b0a1-ecdc46a2d839

    https://www.ft.com/content/30f96f4c-e5a6-452c-a283-265c558b0cf2

    https://www.ft.com/content/4ff06aa6-b1bf-4e08-9b8d-aa42ee240c95

    The first thing I would say is that business media covers things like this much better than something like NYT or WaPo because it has actual business/investor implication (FT is better than WSJ, though). The second thing I would say is that KSA dropping the petro-dollar is an order of magnitude more important than KSA joining BRICS, because BRICS hasn't really done anything.